Internal Revenue Code:Sec. 1397A. Increase in expensing under section 179

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Location in Internal Revenue Code

     TITLE 26 - INTERNAL REVENUE CODE
      Subtitle A - Income Taxes
       CHAPTER 1 - NORMAL TAXES AND SURTAXES
        Subchapter U - Designation and Treatment of Empowerment Zones,
              Enterprise Communities, and Rural Development Investment Areas
          PART III - ADDITIONAL INCENTIVES FOR EMPOWERMENT ZONES
           Subpart B - Additional Expensing
         

Statute

    Sec. 1397A. Increase in expensing under section 179
 
    (a) General rule
      In the case of an enterprise zone business, for purposes of
    section 179 -
        (1) the limitation under section 179(b)(1) shall be increased
      by the lesser of -
          (A) $35,000, or
          (B) the cost of section 179 property which is qualified zone
        property placed in service during the taxable year, and
        (2) the amount taken into account under section 179(b)(2) with
      respect to any section 179 property which is qualified zone
      property shall be 50 percent of the cost thereof.
    (b) Recapture
      Rules similar to the rules under section 179(d)(10) shall apply
    with respect to any qualified zone property which ceases to be used
    in an empowerment zone by an enterprise zone business.
 

Sources

    (Added Pub. L. 103-66, title XIII, Sec. 13301(a), Aug. 10, 1993,
    107 Stat. 552; amended Pub. L. 105-34, title IX, Sec. 952(c), Aug.
    5, 1997, 111 Stat. 887; Pub. L. 106-554, Sec. 1(a)(7) (title I,
    Sec. 114(a), (b)), Dec. 21, 2000, 114 Stat. 2763, 2763A-601.)
 

Miscellaneous

                                 AMENDMENTS
      2000 - Subsec. (a)(1)(A). Pub. L. 106-554, Sec. 1(a)(7) (title I,
    Sec. 114(a)), substituted ''$35,000'' for ''$20,000''.
      Subsec. (c). Pub. L. 106-554, Sec. 1(a)(7) (title I, Sec.
    114(b)), struck out heading and text of subsec. (c). Text read as
    follows: ''For purposes of this section, qualified zone property
    shall not include any property substantially all of the use of
    which is in any parcel described in section 1391(g)(3)(A)(iii).''
      1997 - Subsec. (c). Pub. L. 105-34 added subsec. (c).
                      EFFECTIVE DATE OF 2000 AMENDMENT
      Pub. L. 106-554, Sec. 1(a)(7) (title I, Sec. 114(c)), Dec. 21,
    2000, 114 Stat. 2763, 2763A-601, provided that: ''The amendments
    made by this section (amending this section) shall apply to taxable
    years beginning after December 31, 2001.''